Making Tax Digital for Income Tax for individuals: step by step
Find out how to use Making Tax Digital for Income Tax and how to sign up your business if you鈥檙e eligible.
This guide is also available in Welsh.
Making Tax Digital for Income Tax is a new way of reporting income and expenses if you鈥檙e a sole trader or landlord. You鈥檒l need to use software that works with Making Tax Digital for Income Tax to:
- create, store and correct digital records of your business income and expenses
- send your quarterly updates to HMRC
- submit your tax return and pay tax due by 31 January the following year
Who needs to sign up
You will need to use聽Making Tax Digital for Income Tax if all of the following apply. You:
- are an individual registered for聽Self Assessment
- get income from self-employment or property, or both
- have qualifying income of more than 拢30,000
If your qualifying income is over 拢20,000 or you鈥檙e an individual in a business partnership, you鈥檒l need to use Making Tax Digital for Income Tax in the future. We鈥檒l set out the timeline for these at a later date.
1. Work out your qualifying income
Find out what is included in your qualifying income for Making Tax Digital for Income Tax to check if you need to sign up.
2. Find out if and when you need to use this service
Check if you need to use this service to report your sole trader business and property income. Use our online service to find out when you need to start.
3. Get compatible software
Find out about the software options from different providers available for Making Tax Digital for Income Tax and how to choose the right software for your needs. Remember to connect your existing HMRC online services account to your chosen software.
4. Sign up for Making Tax Digital for Income Tax
Find out what tasks you need to complete before you use the online service to sign up for Making Tax Digital for Income Tax.
5. Use Making Tax Digital
Find out what you need to do after you have signed up and the different tasks you need to do over the tax year. These include creating and storing digital records, sending quarterly updates and what to do if your circumstances change.
Updates to this page
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Added introduction to Making Tax Digital for Income Tax and added descriptions for each step.
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A new step 1 has been added to work out your qualifying income. The steps to check if you need to use this service and when you can sign up have been combined into step 2.
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First published.